Discussion Essay


Health care materials manufacturers and distributors are moving from a supply oriented service to value oriented service and supply process. Why? Explain the difference. To assist facilities in managing rising costs, a reduction of cost is necessary. However, this reduction comes at the expense of the patient/client. Why does cost reduction hurt the patient [or does it] and is this transition from supply to value oriented service really necessary? Defend your answer? Minimum 525 words in length, APA format with 2 recent (past 4 years) secondary references and in-text citations. See attached discussion writing guidelines.


Today, many healthcare materials manufacturers and distributors are moving towards value-oriented service and supply and away from supply-oriented servicing (VanLare & Conway, 2012). However, this move may translate to high costs on the hospitals and healthcare providers. This paper highlights reasons why there move may occur and its implications for quality and outcomes. In addition to this, the essay will assess the need for the transition.

Supply-oriented services are organized around what doctors and medical facilities need (Himmelstein et al., 2014). They aim to maximize gains for the parties who run and maintain health care facilities. This is done through charging highly for a patient to acquire quality service. On the other hand, value-oriented servicing is aimed at maximizing the interests of the patients. Patients aim to acquire the highest quality of service for the lowest value possible.

Value-oriented health care services lead to better patient outcomes because they are directed away from volumes and profitability of services provided. Many hospitals have made this move towards ensuring that patient outcomes are improved (Jha et al., 2012). Healthcare materials manufacturers and distributors are also moving towards value-oriented services following the introduction of a new reimbursement model following the enactment of the Affordable Care Act. The model ensures that the providers can grow their market share and improve competitiveness.

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Reduction in costs of delivering services is essential for a facility to be maintained. This move is directed towards regulating the costs charged to the patients thus moving away from profitability-driven, supply-oriented service. However, this move may harm patients as a health facilities may be forced to reduce the number of employees they have due to a reduction in hospital incomes. This move may hurt the patients due to the reduction in the personnel-to-patient ratio as it increases the time it takes for the patient to acquire a service.

It is essential that healthcare manufacturers and distributors move toward value oriented service because the benefits by far outweigh the drawbacks. Technological advancement has contributed greatly to the advancement in delivery of services in many fields. In the healthcare field, technological advancement has facilitated the discovery of better medicines. In addition to this, hospitals can easily acquire and use new equipment such as MRI (Magnetic Resonance Imaging) machines among others to analyze a patient’s condition. For this reason, the hospitals do not incur very high costs in delivering medical services, and are thus encourages to focus on quality and outcomes as opposed to procedures and profits. Technological advancement has helped reduce the cost of delivering healthcare services. In addition to this, it is essential for the transition to occur because healthcare providers should first and foremost seek to protect the interests of patients. More importantly, value-oriented services will trigger a shift from the current reimbursement model in which payments are made to reward procedures to a new one where health care providers are paid for the quality and outcomes that they deliver.

The move towards value oriented servicing is essential in maintaining sustainability in the healthcare industry. Healthcare manufacturers and distributors who transition are not only likely to improve their market share but are also likely to perform well in the highly competitive field in the future. This objective will be achieved through a reduction in health care costs, leading to improved quality and outcomes and impacting positively to a larger section of the country’s population than ever before. This transition is needed in order for the problems of extremely expensive, highly inefficient, and poor-quality health care services being offered today to be resolved.


Himmelstein, D., Jun, M., Busse, R. Chevreul, K., Geissler, A. & Jeurissen, P. (2014). A comparison of hospital administrative costs in eight nations: U.S. costs exceed all others by far. Health Affairs, 33(9), 1586-1594.

Jha, A., Joynt, K., Orav, J. & Epstein, A. (2012). The Long-Term Effect of Premier Pay for Performance on Patient Outcomes. New England Journal of Medicine, 366, 1606-1615.

VanLare, J. & Conway, P. (2012). Value-Based Purchasing — National Programs to Move from Volume to Value. New England Journal of Medicine, 367, 292-295.

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